Calculate the following metrics of human Resource management practices at PolyDav: a) Human Capital value added at PolyDav? Is this acceptable? b) Return of Human Capital Invested? Is this realistic? Explain c) Employee Cost Factor. Is this realistic? Explain. d) Pay and benefits as a Percentage of Operating Expense? Is this acceptable? Explain.

PolyDav International Ltd is a Tour and Travels Company operating in the East Africa, with its headquarters in Kampala. It enjoys 8% of the market share in the Travels and Tours industry. The company employed 864 full-time staff at the beginning of the year 2021. By the end of the year 2021 total of 122 full time employees left the company. However, management recruited and on boarded 120 new employees during the same year. In December 2021, in a strategic planning meeting with the Board of Directors (BOD) of the company, the new CEO proposed that the company needed total reorganization centred on the Human Resource (HR) function. He argued that Human Resources Management (HRM) is a value-adding function that that will steer the company to realize its strategic objectives of increasing its market share by 100% by 2026 using market development and penetration strategy. He decried the turnover and absence rates as unacceptable since it lowered productivity during the previous year. The Board of Directors then contracted Ernest and Young (EY), an international consultancy company to study the HR situation in the PolyDav and come up with recommendations for improvement. An exit interview conducted by EY indicated that most of the leavers were demotivated by the repetitive and monotonous work processes, overlapping responsibilities, lack of appreciation of work of subordinates by managers and the overly directive and autocratic management style that did not empower employees. Moreover, some departments such as marketing and operations were understaffed. Drivers, for instance, complained of fatigue as many left the company and were not replaced. To the contrary, administrative support staff were overstaffed Cavendish University Case Study Analysis in HRM 2022 Page 1 of 3 EY, also studied the level of absenteeism in the company. Table 1.1 Below show their findings. Table 1.1 Absences by Employees in 2021 No. of Full Time employees Absent 378 No. of Days they were Absent Total Number of Man days lost 25 9450 236 26 6136 100 28 2800 123 38 4674 18 47 846 9 52 416 864 24322 From the table 1.1, for instance, 373 employees were absent for 25 days, leading to a loss of 9,450 man days in the year and in total 24,322 man days were lost in the year as other employees absented themselves from work for different periods of time. The HR Audit report by EY made three recommendations. Firstly, streamlining and simplifying current business processes using appropriate technology so that the company would need only 80% of its current staff. Secondly, there is need to reduce turnover by addressing the issues raised during the exit interview. Thirdly, there is need to revisit the employee related costs in the company so that they aligned to real value-addition. While some department were understaffed, others were overstaffed. EY observed that PolyDav spent a total of UGX 5,184,000,000 on salaries and benefits in the year 2021 alone. Total revenue in the year was UGX 25,600,000,000. Total operating expense for the year was UGX 15,000,000,000 The recommendations by EY, however, create new challenges. What should be dome to the overstaffed departments? How does the company select the so called "excess staff"? How should the company determine the appropriate level of staff vis-a-vis the required money to pay them with? PolyDav International Ltd is a Tour and Travels Company operating in the East Africa, with its headquarters in Kampala. It enjoys 8% of the market share in the Travels and Tours industry. The company employed 864 full-time staff at the beginning of the year 2021. By the end of the year 2021 total of 122 full time employees left the company. However, management recruited and on boarded 120 new employees during the same year. In December 2021, in a strategic planning meeting with the Board of Directors (BOD) of the company, the new CEO proposed that the company needed total reorganization centred on the Human Resource (HR) function. He argued that Human Resources Management (HRM) is a value-adding function that that will steer the company to realize its strategic objectives of increasing its market share by 100% by 2026 using market development and penetration strategy. He decried the turnover and absence rates as unacceptable since it lowered productivity during the previous year. The Board of Directors then contracted Ernest and Young (EY), an international consultancy company to study the HR situation in the PolyDav and come up with recommendations for improvement. An exit interview conducted by EY indicated that most of the leavers were demotivated by the repetitive and monotonous work processes, overlapping responsibilities, lack of appreciation of work of subordinates by managers and the overly directive and autocratic management style that did not empower employees. Moreover, some departments such as marketing and operations were understaffed. Drivers, for instance, complained of fatigue as many left the company and were not replaced. To the contrary, administrative support staff were overstaffed Cavendish University Case Study Analysis in HRM 2022 Page 1 of 3 EY, also studied the level of absenteeism in the company. Table 1.1 Below show their findings. Table 1.1 Absences by Employees in 2021 No. of Full Time employees Absent 378 No. of Days they were Absent Total Number of Man days lost 25 9450 236 26 6136 100 28 2800 123 38 4674 18 47 846 9 52 416 864 24322 From the table 1.1, for instance, 373 employees were absent for 25 days, leading to a loss of 9,450 man days in the year and in total 24,322 man days were lost in the year as other employees absented themselves from work for different periods of time. The HR Audit report by EY made three recommendations. Firstly, streamlining and simplifying current business processes using appropriate technology so that the company would need only 80% of its current staff. Secondly, there is need to reduce turnover by addressing the issues raised during the exit interview. Thirdly, there is need to revisit the employee related costs in the company so that they aligned to real value-addition. While some department were understaffed, others were overstaffed. EY observed that PolyDav spent a total of UGX 5,184,000,000 on salaries and benefits in the year 2021 alone. Total revenue in the year was UGX 25,600,000,000. Total operating expense for the year was UGX 15,000,000,000 The recommendations by EY, however, create new challenges. What should be dome to the overstaffed departments? How does the company select the so called "excess staff"? How should the company determine the appropriate level of staff vis-a-vis the required money to pay them with